New York and EU regulators have established a partnership for stablecoin oversight, enhancing cross-border cooperation under the MiCA framework.
The New York State Department of Financial Services (NYDFS) has partnered with the European Banking Authority (EBA) to enhance oversight of the stablecoin sector through a newly signed memorandum of understanding.
This agreement is designed to bolster cross-border regulatory cooperation in line with the Markets in Crypto-Assets (MiCA) framework. Under this collaboration, both agencies will share sensitive information regarding stablecoin issuers that operate in their respective regions.
The shared data will include:
- Details on licensing and registration denials;
- Issuance figures and the count of asset holders;
- Composition of reserves and management of liquidity;
- Results from stress tests and findings from audits;
- Ongoing investigations and any sanctions applied.
Additionally, certain information, like reports on reserve composition and ownership structures, will be exchanged quarterly without needing a specific request.
The memorandum also facilitates mutual aid during on-site inspections and coordination during crises or ICT system failures.
“This agreement marks an important milestone in strengthening transatlantic cooperation. It reflects our commitment to establishing a globally coordinated supervisory framework for crypto assets,” stated EBA Chair François-Louis Michaud.
Acting Superintendent of NYDFS Caitlin Asrow remarked on the necessity of international collaboration for consumer protection and fostering responsible innovation in the sector.
The EBA noted that prior to the agreement, the confidentiality practices at NYDFS were deemed equivalent to EU standards. Importantly, this memorandum focuses solely on stablecoin activities and does not extend to other business operations of the involved entities.
In a related context, JPMorgan CEO Jamie Dimon had previously criticized a U.S. legislative proposal concerning the structure of the crypto market, particularly around stablecoin rewards.
